Lords Chloro Alkali Limited , a leading manufacturer of caustic soda and chlorine products, has reported robust financial performance for the first half of fiscal year 2026, along with ambitious expansion plans.

Financial Highlights

The company announced a significant year-on-year growth of 59% in total income for H1 FY26, reaching ₹201.00 crore. This strong performance was accompanied by an improvement in operating margins, which rose to 20.76%.

Expansion and Sustainability Initiatives

Lords Chloro Alkali has unveiled a comprehensive ₹165.00 crore capital expenditure plan, focusing on capacity expansion and sustainability:

1. Caustic Soda Capacity Expansion: The company plans to increase its caustic soda production capacity from 300 to 360 tons per day.

2. Sulfuric Acid Production: A new venture into sulfuric acid production is part of the expansion strategy.

3. Solar Power Investment: A significant 21 MW solar capacity installation is planned, aiming to achieve a 40-50% renewable energy mix in the company's operations.

Renewable Energy Focus

The company's commitment to sustainability is evident in its renewable energy initiatives:

• Currently operates a 16 MW solar power plant in Bikaner, contributing about 10% of its energy needs.
• Has signed agreements for an additional 10 MW wind-solar hybrid power, expected to add 15% to the renewable energy mix.
• With the planned 21 MW solar project, Lords Chloro Alkali aims to reach a 40-45% renewable energy share by April-May 2026.

Market Position and Strategy

During the earnings call, Managing Director Ajay Virmani highlighted the company's strong position in the North Indian market. He noted that the geographical location in Alwar, Rajasthan, provides a competitive advantage in the region due to high transportation costs for competitors from Western India.

Future Outlook

The management expressed optimism about the company's future, citing:

• Expected stability in caustic soda prices in the near term.
• Potential benefits from European capacity shutdowns, which could create opportunities in the global market.
• Focus on cost reduction through renewable energy integration, expected to improve EBITDA margins.

Conclusion

Lords Chloro Alkali's strong financial performance, coupled with its strategic expansion plans and focus on sustainability, positions the company for continued growth in the chemical manufacturing sector. The emphasis on renewable energy is expected to provide both cost advantages and environmental benefits, potentially setting a new standard in the industry.

Note: This article is based on the company's announcements and management statements. Investors are advised to conduct their own research before making investment decisions.

Lords Chloro Alkali Limited , a key player in the chloro alkali sector, has reported robust financial performance for the first half of FY26, along with ambitious expansion plans.

Financial Performance

Lords Chloro Alkali reported total income of Rs 201.24 crore for H1 FY26, representing a significant 59.22% year-on-year growth. The company's EBITDA reached Rs 41.78 crore with a margin of 20.76%, while profit after tax stood at Rs 19.49 crore, showing an impressive 743.12% year-on-year growth.

For the quarter ended September 30, 2025, the company's performance was equally strong:

The company attributed this strong performance to higher volumes, better realizations in caustic soda lye and chlorinated paraffin wax, improved fixed cost absorption, and energy cost savings from its solar power plant. Notably, energy costs per tonne decreased by 19% year-on-year during the quarter.

Expansion Plans

The Board of Directors has approved a strategic Rs 165 crore capex plan, which includes:

1. Expansion of caustic soda capacity by 100 TPD
2. Establishment of a new 100 TPD sulphuric acid plant
3. Expansion of solar power capacity by 21 MW

These initiatives align with the company's earlier announced plans to diversify its product portfolio and strengthen its commitment to renewable energy.

Green Energy Initiatives

Lords Chloro Alkali continues to transform into a green chemical company with significant strides in renewable energy:

• Previously commissioned a 16MW solar plant at Bikaner
• Entered a 10MW hybrid power agreement
• Reduced power costs as a percentage of production from 51% to 39%

The proposed 21MW solar project expansion further underscores the company's commitment to sustainability and cost reduction.

Future Outlook

With these expansion plans and green energy initiatives, Lords Chloro Alkali is positioning itself to:

• Capitalize on the growing demand in the chlor-alkali sector
• Enhance operational efficiency and cost-effectiveness
• Strengthen its leadership in ESG-driven practices within the industry

The company's strategic focus on margin stability, product diversification, and sustainable practices sets a strong foundation for future growth and competitiveness in the market.